For emerging market bonds, he said: “The outlook is poor; currencies, which have been a big driver of performance, are weak; and yields are low. It’s an asset class that has had huge inflows and any of a number of things could trigger a repricing. Our emerging markets debt absolute return managers have put 28% of their portfolio in cash, ready to buy assets after prices fall.”

Troy Asset Management, a UK multi-asset manager, says it has found evidence that emerging market assets are ripe for a correction. In a note to its clients last month, its portfolio managers picked out western companies with subsidiaries that are quoted on emerging market stock exchanges. The managers said: “From low initial valuations in 2002, shares in these subsidiaries and associates have risen in value to eye-watering levels. Meanwhile, many of their parents’ valuations have gone in the opposite direction.

“Emerging market stocks have become more fashionable over the past decade, and valuations have risen as a result. The upside from these high valuations must now be limited. Over the coming decade, we expect better returns from the less popular and considerably cheaper holding companies listed in the UK, US and Switzerland.”

A drop in the pace of China’s economic growth is one issue that could trigger a general correction in emerging market asset prices. But some asset managers continue to speak positively of the world’s second-largest economy.

Gigi Chan, fund manager of the Threadneedle China Opportunities fund, said last week: “The evolution of the Chinese economy is creating new opportunities for investors.”